The Stock markets across the
globe are booming with high liquidity. The macro economic concerns are not the
point of discussions at this juncture. The Euro crisis is still alive. In my
earlier postings I asked our viewers to take DAX as a barometer for observing
the future course of action in the stock markets. When DAX made its decent run
from a low of 5366 on 24-11-2011 reached to a level of High at 7194 on
16-3-2012, again fell from 7200 to a low of 5914 on 05-06-2012 then it came to
the recent high level of 7446 high on 14-09-2012. Pls refer my earlier posting
where in I clearly mentioned that the markets are in Bull grip and we have to
change our opinion only when DAX trades below 5900-5850 level. Now the DAX is
in over bought Zone. It will continue to be in Bull grip until it trades above
6950 at first level and 6670 at second level.
The world markets are very likely
to stay above the best support levels due to high liquidity. Our Nifty is good
above 5225 and good support at 5080-5030 level. We have to rethink/strategize
our approach only when Nifty trades below 5050 level. The Buy on decline story
is valid till the second support is breached. Unfortunately the sector rotation
and stock specific approach is continuing for now and will for some more time until
Nifty breaches the best BULL ZONE above 5850 level.
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